Brigade Enterprise reports good earnings in September quarter

In the September quarter, its residential segment witnessed strong bookings with sales volume of 1.31 million square feet (msf), up 33% year-on-year (YoY), with sales value increasing by 44 percent year-on-year. % has increased. 830 crores. During the quarter, the company launched 0.48 msf and has 2.18 msf in the pipeline.

Its rental portfolio is also growing steadily and revenues are growing at 64% annually 136 crores. According to the company’s management, there are strong signs of revival with the tenants partially resuming offices. The revival is supported by increased inquiries, physical site inspections and market closures. Management said there is demand for larger spaces, but medium-sized ones are more active in the market. The overall sales consumption of its retail verticals recovered to 90% of the pre-Covid levels of FY20.

In the hospitality segment, occupancy grew at 45% in Q2FY22 as compared to 23% in Q1 FY22 and average room rate increased by 12% in Q2FY22 as compared to the previous quarter.

Shares of the company responded positively to earnings and ended Friday’s trading session with gains of around 2.5% on the NSE. 502. Another takeaway for investors in this stock is that the company’s collections were strong. 937 crore, up 75% year-on-year and operating cashflow 213 crore, an increase of 17% annually.

As a result, sequentially, the total gross debt of the firm became less than 93 crore and real estate debt reduced 122 crores. Net debt almost declined 87 crores as compared to the previous quarter. Debt reduction has led to an improvement in the key net debt/equity ratio, from 1.27 times in Q2 of FY11 to 0.83x in Q2 of FY12.

Further, similar to peers, the company is also witnessing a steady decline in the cost of debt, which was 9.23% in Q2 FY2011 to 7.94% in Q2 FY2012.